2006 New York Code - Lessor\'s Rights To Dispose Of Goods.

 
  Section 2-A-527. Lessor's Rights to Dispose of Goods.
    (1)  After  a default by a lessee under the lease contract of the type
  described in Section 2-A-523(1) or 2-A-523(3)(a)  or  after  the  lessor
  refuses  to  deliver  or  takes  possession of goods (Section 2-A-525 or
  2-A-526), or, if agreed, after other default by a lessee, the lessor may
  dispose of the goods concerned or the  undelivered  balance  thereof  by
  lease, sale, or otherwise.
    (2) Except as otherwise provided with respect to damages liquidated in
  the  lease  agreement (Section 2-A-504) or otherwise determined pursuant
  to agreement of the parties (Sections  1-102(3)  and  2-A-503),  if  the
  disposition  is by lease agreement substantially similar to the original
  lease agreement and the new lease agreement is made in good faith and in
  a commercially reasonable manner, the lessor may recover from the lessee
  as  damages  (a)  accrued  and  unpaid  rent  as  of  the  date  of  the
  commencement  of  the  term  of the new lease agreement, (b) the present
  value, as of the same date, of the total rent  for  the  then  remaining
  lease  term  of the original lease agreement minus the present value, as
  of the same date, of the rent under the new lease  agreement  applicable
  to  that  period  of  the new lease term which is comparable to the then
  remaining lease term of  the  original  lease  agreement,  and  (c)  any
  incidental damages allowed under Section 2-A-530, less expenses saved in
  consequence of the lessee's default.
    (3)  If  the lessor's disposition is by lease agreement that qualifies
  for treatment under subsection (2), the  lessor  may  elect  to  proceed
  under  subsection (2) or Section 2-A-528. If the lessor's disposition is
  by lease agreement that for any reason does not  qualify  for  treatment
  under subsection (2), or is by sale or otherwise, the lessor may recover
  from  the  lessee  as  if  the  lessor had elected not to dispose of the
  goods.
    (4) A subsequent buyer or lessee who buys or leases from the lessor in
  good faith for value as a result of a  disposition  under  this  section
  takes  the  goods  free of the original lease contract and any rights of
  the original lessee even though the lessor fails to comply with  one  or
  more of the requirements of this Article.
    (5) The lessor is not accountable to the lessee for any profit made on
  any  disposition.  A  lessee  who has rightfully rejected or justifiably
  revoked acceptance shall account to the lessor for any excess  over  the
  amount of the lessee's security interest (Section 2-A-508(5)).